Required information. [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end Data from the current year's balance sheets Assets Cash $ 22,500 $ 33,000 Accounts receivable, net 35,400 Merchandise inventory 84,540 5,200 290,000 308,400 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $437,640 $540,350 $ 61,340 $ 100,300 64,000 210,000 data Accounts receivable, net $31,000 $ 55,200 109,000 Merchandise inventory 63,600 105,400 236,000 Total assets 388,000 392,500 81,500 95,050 5 437,640 5 540,350 Common stock, 55 par value Retained earnings 210,000 57,577 236,000 61,475 $7,400 134,500 7,050 income statement Sales Cost of goods sold Interest expense Income tax expense Net income $800,000 $ 898,200 593,100 636,500 8,000 15,000 15,377 24,797 183,523 221,903 Basic earnings per share 4.37 4.70 Cash dividends per share Beginning-of-year balance sheet 3.00 3.99 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $70 per share, compute their (e) price-earnings ratios and (4) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Aerate 2A Div Yield Req 28